That's an excellent question Don.
For Circuit Sales, here is the information provided on Insurance:
https://stamps.org/How-to-Buy-thru-MailThe fee of $2.00 per circuit is placed in our Insurance Fund to cover any loss or damage while the circuit is in the postal system. The alternative to this fee is a requirement that all circuits are sent by registered mail and insured for the full amount, costing the member about $14 to $17 per circuit. When a circuit is lost in the mail, the Fund pays for the loss. The fee does not cover the circuit while in the possession of the member. For this reason, we urge you to use extreme care when the circuit is in your possession. You are responsible for its safety until it is forwarded to the next address and you have a postal receipt to prove that it was mailed.
Internet Sales Insurance is covered in much the same way.
For background purposes, we average about $25,000/year in claims to circuit sales that are paid through the self-funded account. In 2017, we have received about $16,000 in claims against the fund. The balance at this time is about $1.5 million. We expect that to continue to grow.
Internet sales is also self-funded and covers against loss. This year, we've had about $200 claimed against the fund. We may see as much as $700 claimed against the fund in a year. The current balance is about $154,000.
We also carry insurance against loss for holdings of up to $10 million.
Unless we are talking catastrophic failures, I cannot imagine a system where we either do not or cannot cover against losses.
Posted 06/19/2017 3:31 pm
